Insurance concepts and applications

¶ … Reputation of Insurers in the UK and China

This dissertation examines the how the problem has arisen in the UK industry, what are the damages, the lessons to be learnt, and the extent to which the emerging Chinese insurance market might be exposed to a similar problem in the future. The industry of insurance in the country has been aligning itself for the market changes that have culminated due to the many shifts in China's business structure in recent years. China is one among the Asian economies, the other being India that are touted to be "superpowers in the beckoning." (Kundu, 2001) China has a purchasing prowess of 1.3 billion people, leapfrogging economic growth and slow-but-steadfast economic reforms" (Kundu, 2001) Foreign consumers are attracted by the potential of the Chinese insurance market and are waiting for admission to the market. The UK Insurance Industry is the largest in Europe and third largest in the world. Approximately 348,000 people are employed in the UK insurance industry. The UK insurance industry accounts for 17% of investment in the stock market; and pays out almost 222 million pounds per working day in pension and life insurance benefits and 74 million pounds per working day in general insurance claims. China's insurance industry is newly emerging while the insurance industry in the UK is experiencing problems with consumer confidence and reputation damage and destruction.